• Sweden edition
 

Sweden's economy in good shape: report

Published: 31 Aug 2010 14:03 GMT+02:00
Updated: 31 Aug 2010 14:03 GMT+02:00

SEB bank said that the Swedish economy has provided "upside surprises in

recent months."

It forecast that Swedish gross domestic product (GDP) to grow 4.7 percent in 2010, then decelerate to 2.9 percent in 2011 and 2.3 percent in 2012.

"Lower interest rates, tax cuts and a rapid upturn in exports -- combined with the absence of falling home prices -- have made possible a strong rebound in both output and employment after the deep recession," it said.

In its latest forecasts published less than a month ahead of the country's next elections, Sweden's centre-right government, which is hoping to win a second four-year-term on the back of a strong economic recovery, forecast a 4.5 percent rise in Swedish GDP this year and a 4.0 percent rise in 2011.

It also lowered its unemployment estimate to 8.5 percent for all of 2010 and to 8.0 percent next year.

SEB also forecast on Tuesday that the unemployment rate, which dropped significantly to 8.0 percent in July from 9.5 percent in June, would continue

to fall.

Sweden's national financial management authority (Ekonomistyrningsverket - ESV) meanwhile said it expected the government's finances to be balanced next year, and noted the country's economy was recovering more rapidly than previously expected.

"This year the central government budget shows a deficit, but balance is already attainted next year," it said in a statement.

"Further ahead on the forecast horizon, the surpluses get very large and the surplus target is exceeded," it added.

Nordic bank Nordea said on Monday that it expected Swedish public finances to be balanced as early as this year and also said that the labour market was improving.

It expected Sweden's GDP to grow "more than 4.0 percent" this year, with its export industry benefiting from a pick-up in global trade.

"Even if the international economy slows down, domestic demand in Sweden will contribute to sustaining growth," Nordea said.

Sweden's economy, which was hard-hit by the global financial crisis but which emerged from recession in the second quarter of 2009, is today considered one of the strongest in Europe.

Don't miss...X
Left Right

Your comments about this article

14:26 August 31, 2010 by Audrian
I find this report peculiar; it is too rosy. The US, which is Sweden's major trading partner, is languishing in a recession. This report does not show how America's economic woes is affecting Sweden's economic status, or the GDP.
16:45 August 31, 2010 by Vetinari
@ Audrian

There are other economies to export to other than the US. The states are no longer the end all, center of all trade it once might have been.

Not counting the fact that the US still imports stuff despite the recession, and the relative sizes between the US and Swedish economies means that even if the US imports less, it is still likely to be a major importer of Swedish from a Swedish point of view.
17:42 August 31, 2010 by 2394040
This report is highly suspect. Unemployment is high, so there's no way the economy is in good shape. It's a classic example of politicians manipulating statistics; especially when election time is near. One thing you have to remember where unemployment is concerned is that when people stop looking for work, they are assumed to be working.

When in reality they have just stopped looking for work; even if temporarily. The closing of the bank just the other day is NOT a sign of an economy in good shape.
21:20 August 31, 2010 by mikmak
Gdammit, try understanding why HQ got their license revoked before posting crap about the economy being in bad shape.
15:26 September 1, 2010 by skatty
As far as I remember, the Swedish economy has always been in good shape, no matter what is going on! Shape in Sweden is not a solid shape; economy is like gas and can get whatever shape, it's enough to get a kind of shape, and all shapes are good shapes. Don't worry, read the return of depression by Krugman.
Today's headlines
Motorists in sticky drama after jam spill

Motorists in sticky drama after jam spill

Drivers in western Sweden were forced to jam on the brakes after a van shed its load of preserves and juices which led to major traffic problems. READ  

Property of the Week
In Pictures: The Local's Property of the Week
Photo: Fastighetsbyrån

In Pictures: The Local's Property of the Week

Why settle for owning a house when you can own part of the island it is located on? This week's property allows you to get your money's worth of solitude while spending some time with your closest neighbour - the sea. READ  

Saab buys Swedish submarine shipyard
File photo: TT

Saab buys Swedish submarine shipyard

Swedish defence and aeronautics group Saab said Tuesday it had completed the acquisition of German heavy industry giant ThyssenKrupp's submarine shipyard in southern Sweden. READ  

Opinion
'The Danish narrative on Sweden is based on a lie'
File photo: Shutterstock

'The Danish narrative on Sweden is based on a lie'

There is a popular narrative that in Sweden people bite their tongues while in Denmark they speak their minds; political commentator Brian Esbensen debunks this, arguing that Danes simply find it easier to criticize others. READ  

Swedish cops elect not to shoot 'angry elks'

Swedish cops elect not to shoot 'angry elks'

After reports that wandering elks were scaring the public, police on the island of Frösön have decided not to open fire on the animals, but have urged locals to exercise caution instead. READ  

Swedish funds to tackle female genital mutilation
Sweden's Minister of International Development Cooperation Hillevi Engström with Foreign Minister Carl Bildt. File photo: TT

Swedish funds to tackle female genital mutilation

Sweden has earmarked 48 million kronor ($7 million) of its development aid budget to a United Nations programme to tackle female genital mutilation. READ  

Swedish leaders speak out on Gaza crisis
Photo: TT

Swedish leaders speak out on Gaza crisis

Swedish foreign minister Carl Bildt believes Israel is interested in negotiating a ceasefire with Hamas while Social Democrat leader Stefan Löfven has stood by his comment about the Israelis having a right to defend itself. READ  

New alcohol retail rules threaten micro-breweries
File photo: Systembolaget

New alcohol retail rules threaten micro-breweries

Swedish micro-breweries have reacted with concern to new distribution regulations being imposed by the state controlled alcohol monopoly Systembolaget, which they fear may put them out of business. READ  

ABB and Volvo in electric buses tie-up
Volvo hybrid bus. Photo: Volvo Buses

ABB and Volvo in electric buses tie-up

Swiss-Swedish engineering group ABB and Volvo Buses of Sweden have announced a joint project to develop a system for electric buses to recharge their batteries fast when at bus stops. READ  

'First ever' heat warning issued for Sweden
Photo: TT

'First ever' heat warning issued for Sweden

Swedish weather agency SMHI has issued its first ever warning for high temperatures with the many areas set to bask in plus 30C heat. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Blog updates

22 July

PROTECTING GIRLS FROM ABUSE OF THEIR RIGHTS (The Diplomatic Dispatch) »

"Today (22 July) my Prime Minister, David Cameron, and UNICEF, are hosting the world’s first #GirlSummit in London. The Summit’s aim is to mobilise domestic and international efforts to end the appalling practices of Female Genital Mutilation (FGM) and Child Early Forced Marriage (CEFM). This is a high priority for the UK government and the Prime..." READ »

 

18 July

Starting over (Around Sweden in a kayak) »

" I’ve now been off the water for almost 14 days. At first I was totally gutted being forced into a rest period, I had Stockholm in my sights and apart from the pain and discomfort in my shoulder, spirits were high and I was starting to gain some momentum. The news hit me fairly hard and..." READ »

 
 
 
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
National
Malmö mayor slams Danish beggar ban
National
Swedish anti-abortion midwife sues county
National
Swede's salary chopped for Facebook use
National
Northern Sweden warmest in 90 years
Gallery
'Victoria Day': Crown Princess Victoria turns 37
Politics
Mona Sahlin to fight extremism in Sweden
National
EU tells Sweden to cover up snus flavours
Society
Swede snags assassin role in Tom Cruise film
Lifestyle
Top ten ways to spend a few days in Malmö
Gallery
Swedish summer tourism highlights
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

691
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se